The Federal Government, states andlocal governments, weekend, shared an unprecedented N1.3 trillion from the Federation Account and proceeds of the Value Added Tax, VAT, earned in June.
The figure was more than twice the allocation received from the federation revenue in the previous month which stood at N606.5 billion.
The Federation Account Allocation Committee, FAAC, which allocates federation revenue to the three tiers of government decided to release the huge funds to the government to enable states commence the implementation of the N18,000 minimum wage.
This month’s huge allocation to the states will not, however, be sustained as it included six months’ arrears totalling N710.71 billion which the committee, chaired by the Minster of State, Finance, decided to release to the three tiers of government.
An analysis of the detailed allocations showed that the Federal Government took N693.79bn representing 2.68 per cent; the 36 states got N351.90bn representing 26.72 per cent while the 774 local governments got N271.30bn or 20.6 per cent.
It also showed that thenine oil producing statesgot an additional N171.21bn, representing13 per cent derivation from crude oil revenue.
The Permanent Secretary of the Ministry of Finance, Mr. Danladi Kifasi, told journalists that the gross revenue received for the month of June stood at N883.3bn, representing a N212.83bn increase overthe N670.46bn collected in the preceding month.
He attributed the increase in gross revenue to a rise in oil prices at the international market as well as the increase in payment of the Production Sharing Contracts.
However, there was a decrease in crude oil production and lifting during the month owing to the ongoing maintenance work at the Brass terminal.
In spite the increase in the gross revenue, Kifasi said N82.96bn was added to the total sum as augmentation for the month to push up distributable revenue based on the 2011 approved budget.
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